Bihar’s Deputy Chief Minister Sushil Kumar Modi says the GST Council will reject the requests by telcos for refund of input tax credit of Rs 36,000 crore. Tax revenues drop to the extent credit is used true, but denying telcos refund of input tax credit ostensibly due to worries over slowing revenues is plain unfair. So, theneed is to amend the GST law to allow refund of excess input tax credit and eventually match the output tax liability. It will enable service providers that includes telcos to instantly claim refund of input tax credit (read GST paid to vendors supplying capital goods). Given the mine of information thrown up by GST, the government should use data analytics to identify and crack down on fake claims of input tax credit.

Source: Economic Times December 30, 2019 17:37 UTC